A limit order is an instruction to your broker to buy or sell an asset only at a specific price or better. It is one of the most common order types on Australian trading platforms, used to control the exact price you pay or receive instead of accepting whatever the market is offering right now.
Most CFD and share brokers in Australia let you place limit orders directly from the order ticket, and the order sits in the market until it fills, expires, or you cancel it.
How a Limit Order Works — A Practical Example
Say AUD/USD is trading at 0.6550 and you think it will dip before climbing again. You place a buy limit order at 0.6520 for a mini lot worth around A$15,300.
If the price falls to 0.6520, your broker fills your order at that level — or better. If the market never reaches 0.6520, the order simply doesn’t execute and you pay nothing.
Compare this to a market order, which would have filled instantly at 0.6550. The 30-pip difference on a mini lot is roughly A$45 saved — assuming your pip value calculation is correct for the lot size.
You can also use limit orders to take profit. If you bought XAU/USD at US$2,400 and want to lock in gains at US$2,450, a sell limit at US$2,450 will close the trade automatically once the target hits.
Why Limit Orders Matter for Australian Traders
ASIC requires licensed brokers to provide best execution on client orders, meaning they must take reasonable steps to get you the best available price. Limit orders strengthen this protection because you set the price yourself — the broker cannot fill you worse than your specified level.
This matters most during volatile sessions, like the Sydney open or major US data releases, when spreads widen and market orders can suffer heavy slippage. A limit order caps your worst-case entry or exit price.
Brokers with deep liquidity and fast execution fill limit orders cleanly. Brokers with poor routing may leave your order partially filled or skip it entirely if the price only briefly touches your level.
Limit Order vs Stop Order
A limit order buys below or sells above the current market price to get a better fill. A stop order does the opposite — it triggers a market order once price crosses a level, usually to cut losses or enter a breakout. Limit orders guarantee price but not execution; stop orders guarantee execution but not price. For most Australian traders, the limit order is the more important factor to check when managing entries and profit targets.
What to Check When Comparing Brokers
- Confirm the broker accepts limit orders on every asset class you trade — shares, forex, indices and crypto CFDs. Some platforms restrict order types on certain markets.
- Check execution speed and slippage statistics. ASIC-regulated brokers like Pepperstone publish execution data showing how often limit orders fill at the requested price.
- Look for partial-fill handling. Good brokers let you decide whether a partial fill counts as done or stays open for the remainder.
- Test the order ticket on a demo account first. The platform should let you set expiry rules like Good-Till-Cancelled (GTC) or Good-For-Day (GFD).
- Check whether limit orders incur extra fees. Most ASIC-licensed brokers charge the same commission regardless of order type, but always confirm in the PDS.
See our picks for the best CFD brokers in Australia — all ASIC-licensed, all live-tested by our team.
Trading CFDs carries significant risk. 70–80% of retail accounts lose money. ASIC regulated. We may earn commission via links.